Wells Fargo Offers Man Two-Dollar Loan Modification
March 23rd, 2011
In what seems to be an ongoing trend of loan modification disaster stories, an Ohio man has reported that after months of working with Wells Fargo on a loan modification and being advised to stop paying his mortgage during the process, the lender has offered to dock two dollars from his monthly mortgage payment[1]. Not surprisingly, the lender firmly denies telling the man to stop making payments and insists that it is “continuing to work…to identify potential options that would allow him to retain homeownership.”
It seems like more and more of these stories are coming out about lenders advising homeowners to stop paying their mortgages and homeowners finding themselves unable to get loan modifications due to lender recalcitrance rather than inability to provide the loan mod. Do you think that these issues are feeding off each other, or are the lenders entirely to blame?
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[1] http://www.newsnet5.com/dpp/news/local_news/investigations/Independence-man-offered-2-mortgage-loan-modification
March 23rd, 2011 at 10:07 AM
Nothing new here! same old dog and pony show, shell game! guess which shell your mods under answer none!! Wells rarely owns the loan they are sold off into securitized mortgage backed loan pools,weather they keep you in your home or they foreclose they make money, when the banks threw the country into a tailspin with these mortgage backed security’s and sold them off around the world in pieces, they knew it would collapse, then run to Treasury for a bailout, TARP, made money on that, they are an unlicensed casino playing with peoples lives they take no responsibility and are not held accountable, the realty market is the backbone of the economy no one is buying or building people are losing their homes by the thousands Banks could care less if the market is flooded with empty homes they will not lose a dime either way they may not be able to modify loans because no one knows who owns them?? who has legal standing to modify them the Title insurance Company’s are scared to hell they will be paying for clouded titles anyone that buys a foreclosure caveat emptor Is their a clean title left anywhere in this country or was this the Bankruptcy Osama Bin Laden talked about you decide, time to wake up America we have found the enemy and it us
March 24th, 2011 at 5:36 AM
I have talked to lots of people that say the mortage company’s tell the homowner to stop paying there payments this is happening a lot I was told the same thing they won’t help you unless you are behind a lot instead of helping you before you get behind also I lost a house and never missed a payment I did not no they were foreclosing on my house I showed up at my house to find nothing all my stuff gone I even sent proof of payments on the house I told a reliator and showed her proof I made payments she tryed calling them to straitin the hole thing out and they refused to talk to her she said in her 30 years in the busness a mortgage comp has never refuse to talk to her I also lost a ford 150 4×4 truck and never missed a payment I only owed 8 more payments it would have been payed off I was sick
March 24th, 2011 at 8:14 AM
I could easily beat this story. My wife lost her job last year and our 2 SFR rentals and our 1 primary all have Bank of America Loans. We applied for Loan Mods over 14 months ago and were told to stop making payments to get them to go through. After months of being led from dept to dept with nobody ever able to tell us what our status was (one rep would say it’s been approved, another would say that they don’t even see the mod request, etc, etc) we were requested to resend the entire documentation again. Over the course of a year this happened 4 more times. Sometimes it was stated that they don’t show the documentation, other times they stated they just needed more up to date documentation. After all of this, 14 months later, there has never been an answer or any advice from BoA. You would not beleive the number of hours I’ve spent doing paperwork, on the phone and worrying that someone is going to show up at our door and tell us to get out. I’ve never seen anything like this in my life and wouldn’t believe it if someone told me this could happen. All homes in Colorado. We will now be claiming Chapter 7 b/c there is no way to catch up.
March 24th, 2011 at 8:25 AM
Well without knowing the homeowners income we can just guess about this. Loan mods are done at 31% of their gross income. I just had one that after a year of them working on it they came back with a payment the same as they had with no principal reduction. I have now recommended they do mortgage litigation.